PCAOB Board Member Defends Against Congressional Attack

PCAOB Board Member Anthony C. Thompson defended the agency from Congressional proposals to dismantle and fold it into the Securities and Exchange Commission.  

In a statement, Mr. Thompson argued that dismantling the PCAOB would unravel critical infrastructure. He defended the PCAOB's depth of audit experience and regulatory effectiveness and warned that "the current threat to the PCAOB and its mission of investor protection will have devastating ripple effects across the capital markets and the audit profession." 

He also reported considerable concern in the international community about the global implications of disrupting PCAOB operations. He argued that such a disruption would jeopardize bilateral agreements with international audit regulators and impair the PCAOB’s ability to oversee audits of international issuers trading on US exchanges. He warned: "[o]ur bi-lateral agreements with many countries could be at risk. Each agreement would have to be renegotiated, which could take years, if new agreements can be reached at all. If PCAOB inspections and investigations are disrupted here and abroad, investors could be harmed, and the trust in our capital markets that the PCAOB has worked diligently to support over the last two decades could be significantly eroded." 

Mr. Thompson highlighted the PCAOB’s role in supporting audit committees, referencing the Board’s extensive engagement with more than 200 audit committee chairs annually. 

Mr. Thompson appealed for the preservation of the PCAOB’s institutional integrity and affirmed the Board’s vigilance as the legislative process continues to unfold.